Sustainability and Shareholder Value?

Speaking at a recent conference on corporate strategy and sustainability, metavû CEO and Founder, Mark A. Serwinowski discussed the Shareholder Value Add equation and how targeted sustainability initiatives drive improved net operating profit after tax and reduced cost of capital. Top sustainability performance is no longer an option - it's measurable.

How can a sustainability strategy drive Shareholder Value? Innovative product development, clean technology, environmental differentiation, sustainability messaging and access to new markets all positively net operating profit after tax. Similarly, energy efficiency and optimization, resource efficiency, environmental footprint analysis (i.e., Life Cycle Assessment or Carbon Footprint) - in aggregate work to decrease operating costs.



The second part of the equation, Capital Charge, is impacted by sustainability through optimized utilization of assets involved in creating profits. Green or low-energy-cost supply chain, capital stewardship, asset reliability, “green-washing” avoidance, and stakeholder partnerships all contribute to improved asset management and decreased Weighted Average Cost of Capital.

In this economic downturn, having a clearly defined sustainability strategy to address these risks and opportunities is paramount to continuity of the business and forms the basis for competitive advantage and long-term profitability. What’s your sustainability strategy?

metavû is a business consultancy helping companies define a sustainable business for growth and long term profitability. We provide thought leadership and implementation expertise to optimize products, services and business models to manage energy, social and environmental risk throughout the value chain.